Vedanta Limited delivered exceptional first quarter results as a newly restructured entity, with consolidated net profit surging 152% to ₹5,294 crore compared to ₹2,102 crore in Q1 FY26. The metals and mining conglomerate reported revenue of ₹23,456 crore for the quarter ended June 30, 2026, representing 51% year-over-year growth and marking the second-highest quarterly revenue in company history. The company's EBITDA nearly doubled to ₹8,469 crore, up 98% from the prior year period, with EBITDA margin expanding to approximately 57%, representing a 985 basis points year-over-year improvement. This transformational financial performance came as Vedanta completed its major corporate restructuring, with the demerger unlocking over ₹71,000 crore in combined market capitalization value during the quarter.
Alongside the exceptional Q1 results, Vedanta announced the appointment of Arun Misra as Chief Executive Officer for a one-year period, starting August 1. As reported by The Economic Times, the incoming CEO stated that "We have delivered a strong start to FY27, with robust performance across all business segments of demerged Vedanta," adding that "This consistent operational execution across our portfolio reflects the strength of our underlying asset base and our continued focus on volume growth, cost efficiency and value creation." The company also announced plans to demerge its surplus real estate portfolio into a new entity called Vedanta Property Platforms Limited (VPPL). The VPPL demerger will be executed as a vertical split wherein shareholders of Vedanta would receive 1 share of VPPL for every 20 shares of Vedanta, unlocking value from approximately 2,200 acres of industrial land and about 55,000 square feet of residential and commercial properties.
Three recently-demerged Vedanta Group stocks experienced significant declines on July 30 following their June quarter earnings announcements. Vedanta Iron & Steel shares fell 1% to ₹30.45 after reporting a consolidated net profit of ₹122 crore for Q1 FY27, while Vedanta Power shares dropped nearly 4% to ₹33.96 following a standalone loss of ₹449 crore compared to a net profit of ₹75 crore in the year-ago period. Vedanta Oil & Gas shares declined nearly 5% to ₹33.38 despite posting a consolidated net profit of ₹945 crore versus a net loss of ₹476 crore in the previous quarter. The mixed market reaction reflects investor concerns over operational challenges and margin pressures across the demerged entities, though the overall market response was overshadowed by Vedanta Limited's exceptional performance.
Vedanta's financial position strengthened significantly with return on capital employed reaching 29% and net debt to EBITDA improving to 0.3x, positioning the company among the best-in-class in the industry. The company maintained strong liquidity of ₹19,992 crore in cash and cash equivalents against net debt of just ₹8,299 crore. Credit rating agencies validated this improvement, with both ICRA and CRISIL upgrading Vedanta Limited to AA+/Stable - the highest rating the company has received since 2014. At the parent level, Vedanta Resources achieved decadal high ratings with S&P and Fitch at BB/Stable and Moody's at Ba3 with a positive outlook. The company's debt structure shows balanced diversification with 62% denominated in Indian rupees and 38% in US dollars, with total consolidated gross debt at $2.99 billion and year-to-date average finance costs at approximately 8.40%.
Zinc India operations delivered particularly strong results with highest-ever first-quarter mined metal production of 268 kilotonnes, marking the fifth consecutive year of record Q1 output. Refined metal production stood at 260 kt, up 4% year-over-year, while silver production remained flat at 149 tonnes but contributed approximately 46% toward overall profitability. Zinc India's revenue reached ₹12,985 crore up 72% year-over-year with EBITDA of ₹8,096 crore up 112%, driven by higher zinc LME prices ($3,466 per tonne versus $2,641 in the prior year) and dramatically higher silver prices ($73.2 per ounce versus $33.7). The company achieved cost of production reaching a quarterly low of $851 per tonne, improving 16% year-over-year, attributed to operational efficiencies and increased renewable power consumption which rose to 22% of overall power usage. The Ferro Alloys subsidiary also posted highest ore production of 153 KT, up 41% year-over-year, demonstrating strong operational performance across multiple segments.
